The Budget Cap Dilemma: Can You Reduce Spending and Preserve Patient Health?

National Pharmaceutical Council (NPC) hosted a virtual panel discussion on state decisions to implement budget caps and the strategies, challenges, and the relevance of these decisions on patient health.

A virtual panel discusses state decisions on implementing budget caps and the relevance of these decisions on patient health.

More and more, states are using budget caps -- budget planning tools designed to help policymakers set a limit on annual health spending growth. Along with an increase in use, there also are significant differences in how budget caps are implemented. A National Pharmaceutical Council (NPC) study assessed the potential effects of budget cap design to help budget decision-makers understand how and when these approaches impact patient health. The report identified design elements needed to ensure success, both in terms of cost reduction and health improvement.

Sorting through the various considerations of budget cap implementation can be challenging. The research explains how budget caps vary in several important ways, including (1) implementation strategies, (2) enforcement mechanisms, and (3) determination of spending growth limits. Budget caps also often have growth targets that use factors unrelated to health care delivery, such as inflation, productivity growth, and GDP growth. This webinar centers on the factors most important for achieving budgetary objectives while preserving patient outcomes.

Speakers include:

  • Robert W. Dubois, MD, PhD, (Moderator) Interim President and CEO, National Pharmaceutical Council (NPC)
  • Michael Ciarametaro, MBA Vice President, Research, National Pharmaceutical Council (NPC)
  • Matt Salo Executive Director National Association of Medicaid Directors (NAMD)
  • Andrew Sperling, MA, JD Director, Legislative Affairs, Advocacy and Public Policy, National Alliance on Mental Illness (NAMI)
  • Hemi Tewarson, MPH, JD Visiting Senior Policy Fellow, Duke-Margolis Center for Health Policy